Taiwan To Levy VAT On Online Retailers
Taiwan’s Executive Yuan has approved a Finance Ministry proposal to impose value-added tax on foreign online sellers’ supplies to Taiwanese consumers.
The proposal is intended to modernize Taiwan’s VAT rules, raise additional revenues, and level the playing field for bricks and mortar establishments.
Foreign online suppliers selling cross-border goods and electronic services to end consumers will have to register for tax in Taiwan through a permanent establishment or appoint a VAT representative. The permanent establishment or agent will be required to file bimonthly VAT returns.
Draft legislation will shortly be submitted to the Legislative Yuan, Taiwan’s sole legislature, for approval. It is hoped that the measure can be implemented early in 2017.
Source: Tax News
